Tag Archives: news
Research suggests more people in Europe are finding home prices too high
Confidence in European housing market has hit a plateau at a time when unaffordable prices are forcing people to live with parents or put off having children, according to new research. Overall some 56% of people in Europe expect house prices to rise in the next 12 months and as a result 33% are delaying important life decisions, the homes and mortgages 2016 report from ING suggests. But a breakdown of the survey data covering 15 countries shows that there are vast shifts in outlook across Europe and the most dramatic shift has been in the UK, where expectations of rising house prices fell by 13% prior to the referendum on its future in the European Union. Following the Brexit vote the question was repeated and the number who expect house prices to fall grew 16%. It means that 46% of people in the UK now believe house prices will rise in the next year, the lowest proportion since the first survey was conducted in 2012. Falling interest rates are one factor that can typically influence house prices. Across Europe, Luxembourg at 28% and the UK at 26% have the largest share of people who report that low interest rates have pushed up house prices where they live. However, in all but two of the countries included in the study, when asked how the fall in rates has affected house prices where they live, some 39% of respondents say they ‘do not know’, indicating that few actually understand the effect on house prices. Unaffordable housing is having an impact across Europe. Some 60% of people find that house prices where they live are expensive and 33% are putting their lives on hold as a result. Those affected admit to putting the brakes on their futures, with 29% being forced to live with others, 22% saying they feel trapped in their current jobs and 16% delaying having children. High house prices are resulting in 24% of people finding it difficult to pay their mortgage each month, reaching highs of 41% in Poland and 40% in Romania. As a coping mechanism, some 46% are compromising on their housing choices whether they rent or own their home. Of those who have compromised and are unhappy with their situation 39% moved to areas they do not like as much and 39% settled for a smaller home while 37% of those who are unhappy with their housing today say they opted for houses in poor condition. Despite these challenges, 46% want to buy a house in the near future and are willing to make the necessary sacrifices in order to call their place their own. Some 41% of people in Europe admit to curtailing spending a lot in order to buy, although this proportion rises to a survey high of 60% in Turkey. The difficulties facing buyers have also led to a reliance on the… Continue reading
Many parts of New Zealand seeing new home development boom
The home building boom in New Zealand is continuing to gather momentum with planning consents up 13% in the 12 months to July 2016, and up 2% month on month. p 52% in Bay of Plenty, up 37% in Waikato and up 21% in Otago. The value of residential and commercial building work is also booming and hit an all-time record of $18.5 billion for the year to July, up from $15.6 billion the previous year. Of this, $6.3 billion was non-residential, and half of that was for education buildings such as at Victoria, Canterbury and Otago universities. In Auckland, the total of all building work increased 32% to $6.9 billion for the year, while residential increased 29% to $4.4 billion. In Christchurch post-earthquake building is continuing with the latest $300 million development of 600 homes confirmed by Building and Housing Minister Nick Smith. The development adds to three set up under the Christchurch Housing Accord, between the Christchurch City Council and the Government, which aimed to increase the longer term supply and affordability of homes and are the final phase of the Government’s housing response to the earthquakes. ‘I am hugely encouraged by the progress we are making in Christchurch, where the market is now well recovered from the loss of 10,500 homes in the quakes. Housing in Christchurch was an acute problem two years ago, with costs rising rapidly and record numbers of people requiring emergency housing,’ said Smith. He pointed out that rents in Christchurch have declined by 7% in the past year as compared to a national increase of 3% and house prices have increased 2.6% compared to the national increase of 14.2%. ‘We are now well down the road of recovery. The completion of these four Government-initiated housing projects and the council’s new housing organisation will help give Christchurch a mix of social and affordable housing to meet future needs,’ added Smith. Continue reading
Cleaning is top issue for UK landlords and letting agents
Dirty properties are a growing problem for letting agents and landlords in the UK with cleaning becoming the top cause of disputes and it is getting worse, new research suggests. The latest data from the Tenant Deposit Scheme shows that cleaning continues to take the lion’s share of deposit disputes, up almost 50% over the last five years. Indeed, cleaning has consistently been the most common dispute in cases brought to the TDS and arises in 58% of the cases they deal with. According to Imfuna, agents and landlords are increasingly facing filthy properties at the end of tenancies. Many tenants claim their landlord or agent failed to make it clear that the property should be left clean at check-out,’ said Jax Kneppers, the firm’s chief executive officer. She pointed out that it is essential that landlords and agents conduct a thorough inventory, with photography and detailed descriptions on the condition of the property at the start of the tenancy. This ‘proof of condition’ should be shared with the tenant when they are issued with the tenancy agreement. The biggest problems that agents and landlords face are dirty ovens and fridges, stains and marks on carpeting and flooring, bathrooms which have not been cleaned for months and pet hair and excrement on floors, furniture and soft furnishings. ‘At the check-out stage, the tenant should be made aware of the areas requiring cleaning and the potential cost involved. It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear,’ added Kneppers. Howard Lester, director of Balgores Property Group, said he has seen a sharp rise in the number of properties that require professional cleaning services at check-out over the last 12 months. ‘There is a definitely a lack of respect for property amongst tenants and it appears that they are happy to live in dirty accommodation. Many tenants fail to leave their property in the same condition when they leave a property and we have seen many properties in a filthy state at the end of the tenancy,’ he explained. He pointed out a recent case where the property was left in a disgusting state. The tenants had not cleaned the oven for months and it was caked with grease and spills on the hob and on the inside. Bags of rubbish were left in the kitchen and the worktops were filthy with grime. The carpets were heavily marked with pet excrement and numerous spills. The garden was left with an old washing machine, rusty bikes and worn out tyres. It cost the landlord several hundred pounds to have the property professionally cleaned. ‘Tenants are often shocked to realise that professional cleaning can be costly, depending on the area and type of work required. Some tenants think cleaning issues… Continue reading
